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How To Get Farm Loans For Veterans

By David Long


A veteran is someone who has served in a branch of the military over a period of time. As a result, he has the privilege of applying for farm loans for veterans once he has met the requirements. To prove he is eligible for one of these loans, he needs a Certificate of Eligibility (CEO) from the VA.

A veteran cannot have a dishonorable discharge from the military and get a CEO. He must have served 181 consecutive days during peacetime and at least 90 consecutive days during wartime. After the Vietnam War was over, things changed, and a 24 month rule became effective. To receive a Certificate of Eligibility in the following years, a veteran had to serve for 24 months in a row.

It is time for the veteran to choose a real estate agent to use. Friends and acquaintances may know one that is dependable and trustworthy. He can find a list of local agents online that he can choose from if he does not have a recommendation.

He will need to search for a lender that works with VA farm loans. Since interest rates, closing rates and discount points are set by each lender, it pays to check with different ones before deciding which one to use. Once he selects a lender, he should ask about becoming pre-qualified so he knows how much they will lend him to buy a piece of property.

Now the veteran can search for a property that he wishes to buy. It helps if he discusses the things the property must have for him to purchase it with the real estate agent so the agent knows exactly what he wants. When property is found, the client must make a purchase and sales agreement with a VA option clause. The clause keeps the buyer safe in case the VA deems the property too expensive for its value. The purchaser can make the decision to choose another property or to go ahead and buy the property he chose. If the VA rejects his loan application, he can also back out of the deal.

A lender who is knowledgeable about farm loans from the VA, will help the client apply for the loan once he decides which property he wants to buy. The lender will ask for a list of assets, bank statements and pay stubs so he can be sure the client can pay off the total amount of the loan. Once all of the paperwork is in the lender's hands, the buyer has to wait to find out if his loan is approved or not.

During this waiting time, the lender is busy checking all of the paperwork the client provided him. He also seeks an appraisal to see how much the property is worth. When all of this is finished, the lender decides whether or not to grant the loan.

The lender is responsible for selecting someone from their company, a title company or a lawyer of their choice to determine the date and time of the closing. The closing takes place once the loan is approved. It does not always happen on the date it is set for. The person chosen by the company is responsible for resetting the date and time. When the final papers are signed, the ownership of the property passes on to the veteran.




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